Uganda’s export earnings jumped 36% year-on-year to $1.5 billion in August 2026, up from $1.1 billion a year earlier, as stronger gold shipments boosted the country’s foreign exchange inflows.
According to the Finance Ministry, gold exports were the main driver of the increase, generating $889 million during the month. This represented a 68.9% rise from the same period last year, showing the growing importance of the precious metal to Uganda’s trade performance.
The figures point to Uganda’s emergence as a regional centre for gold processing and trading, with the mineral becoming an increasingly important source of foreign currency for the economy.
Gold strengthens Uganda’s external position
Higher export earnings help improve the availability of foreign currency in Uganda, supporting its external position and potentially easing pressure on the Ugandan shilling.
Export receipts provide a crucial source of dollars needed to pay for imports, service external obligations and facilitate international trade. However, stronger exports alone do not guarantee currency stability, which also depends on import demand, capital flows and monetary policy.
The Finance Ministry expects diaspora remittances to provide additional support to the shilling towards the end of 2026. It also pointed to the central bank’s sharp increase in its policy rate as a measure that could offer near-term support to the currency.
Higher interest rates influence investment flows and domestic financial conditions, although their overall impact on the exchange rate depends on broader economic developments.
Oil could provide another source of export revenue
Uganda is also preparing to enter a new phase of its export development, with commercial crude oil production expected to begin in early 2027.
The planned production from oil fields in western Uganda, near the border with the Democratic Republic of Congo, could introduce another significant source of foreign exchange earnings alongside gold and other commodities.
The Finance Ministry expects the start of commercial oil production and exports to strengthen the country’s foreign exchange earnings and external position over the medium term.
“Commencement of commercial oil production and export will strengthen Uganda’s foreign exchange earnings and external position over the medium term,” the ministry said.
If production and exports progress as planned, oil could help broaden Uganda’s export base and reduce its reliance on existing commodity revenue streams. The scale of that benefit, however, will depend on how quickly production develops and export volumes build up.
What it means for Uganda’s economy
The August figures point to a strong export performance, but sustaining that momentum will require more than favourable gold prices and increased shipments.
Uganda’s ability to convert commodity earnings into lasting economic gains will depend partly on diversifying its export base, expanding domestic value addition and managing the foreign exchange generated by its growing trade sector.
For now, gold is doing much of the heavy lifting. With oil exports potentially on the horizon, Uganda is positioning itself for another source of foreign currency, one that may reshape its external trade outlook in the coming years.